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ow please find the adi 7. (Statistics and diversification of two stocks) Below ple prices of Kellogg (K) and IBM: TEL F C D E

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ow please find the adi 7. (Statistics and diversification of two stocks) Below ple prices of Kellogg (K) and IBM: TEL F C D E IBM AND KELLOGG Adiusted prices Annual return Kellogg (K) IBM Kellogg (K) IBM Date 25.25 74.02 1999-01-04 15.48 91.12 2000-01-03 2001-01-02 17.39 91.34 21.23 88.42 2002-01-02 2003-01-02 23.66 64.56 2004-01-02 27.62 82.55 2005-01-03 33.4 78.31 2006-01-03 32.87 68.79 2007-01-03 38.65 85.02 2008-01-02 38.36 93.14 2009-01-02 3 6 81.09 2010-01-04 46.29 110.45 2011-01-03 44.11 149 2012-01-03 44.83 180.14 2013-01-02 54.74 193.13 2014-01-02 55.87 171.29 2015-01-02 65.08 152.24 Mean Standard deviation Covariance Correlation a. Compute the annual return of each stock. b. Compute the covariance and correlation coefficient between the returns of Kellogg and IBM. c. Are there any advantages to diversifving between IBM and Kellose

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